Which of the following is not a measure that management can use in evaluating and controlling investment center performance?
A) rate of return on investment
B) negotiated price
C) residual income
D) income from operations

Question

Quizplus · Accepted Answer

Negotiated price is not a measure of investment center performance because it is not related to the center's ability to generate profits or return on investment. Negotiated price refers to the price agreed upon in a contract or purchase agreement and is determined outside of the investment center's control. The other options listed (rate of return on investment, residual income, income from operations) are all measures commonly used by management to evaluate and control investment center performance.

Which of the Following Is Not a Measure That Management